MPI sends out CD$58 million in rebate cheques

Manitoba Public Insurance (MPI) is mailing out CD$58 million in refund cheques, representing 10% of the basic Autopac premiums paid by Manitoba drivers during the 2004-05 policy year.About 550,000 policyholders will receive a rebate this year. The rebates will not affect policyholders’ new basic rates this year, MPI announced, “although 57% of policyholders will enjoy lower insurance premiums when they renew.”MPI said the rebates are possible largely because of better than anticipated returns on investments.”Manitoba Public Insurance has experienced a number of very successful years where costs have been lower than expected and investment returns have been higher than expected,” MPI announced on its Web site. “Better than expected investments has had the most significant impact.”Since 2001, a total of CD$140 million in premiums will have been returned to Manitobans through rebates.The corporation has nearly $2 billion in investments. About $1 billion is reserved for the ongoing needs of current and future claimants. About $85-100 million is kept in the Rate Stabilization Reserve, a pool of funds designed to protect Autopac rates from sudden increases due to unforeseen events. The balance is for unearned premiums and reserves held for competitive lines of business.